interim financial report for the quarter ended...
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Interim Financial Reportfor the quarter ended
31 March 2015(Un-audited)
Directors' Review 3
6
5Condensed Interim Balance Sheet
7
Condensed Interim Profit and Loss Account
8
Condensed Interim Statement of Comprehensive Income
9
Condensed Interim Cash flow Statement
10
Condensed Interim Statement of Changes in Equity
Condensed Interim Notes to the Financial Information
Agritech Limited
BOARD OF DIRECTORS
Mr. Wajahat Ahmed Baqai ChairmanMr. Asim Imtiaz BasraMr. Ahsan Raza DurraniMr. Rehmat Ali HasnieMr. Kamran Ali KazimMr. Mohammad Khalid Mir Chief Executive OfficerMr. Muhammad Faisal MuzammilMr. Masroor Ahmed Qureshi
COMPANY SECRETARY & CFOSyed Taneem Haider
AUDIT COMMITTEE
Mr. Ahsan Raza Durrani ChairmanMr. Kamran Ali KazimMr. Masroor Ahmed Qureshi
HR & REMUNERATION COMMITTEE
Mr. Asim Imtiaz BasraaChairmanMr. Mohammad Khalid MirMr. Kamran Ali Kazim
LEGAL ADVISOR
Mr. Barrister Babar S Imran
SHARES REGISTRAR
Hameed Majeed Associates (Private) Limited
COMPANY WEBSITE
www.pafl.com.pk
AUDITORS
KPMG Taseer Hadi & Co.Chartered Accountants, Lahore
BANKERS
JS Bank LimitedFaysal Bank LimitedNational Bank of PakistanStandard Chartered Bank (Pakistan) LimitedAlbaraka Bank Pakistan LimitedDubai Islamic Bank Pakistan LimitedSummit Bank LimitedSilk Bank LimitedKASB Bank LimitedAllied Bank LimitedBank Alfalah LimitedThe Bank of PunjabBank Islami Pakistan LimitedAskari Bank LimitedPak Libya Holding Company (Pvt.) LimitedSoneri Bank LimitedMeezan Bank Limited formerly HSBC Bank United Bank LimitedHabib Bank Limited
REGISTERED OFFICE
2nd Floor Asia Centre, 8-Babar Block,New Garden Town, LahorePh: +92 (0) 42 35860341-44Fax: +92 (0) 42 35860339-40
PROJECT LOCATIONS
Unit IUrea PlantIskanderabad, District Mianwali.Ph: +92 (0) 459 392346-49
Unit IIGSSP PlantHattar Road, Haripur.Ph: +92 (0) 995 616124-5
Directors' Review
Interim Financial Report
Sales Net
Operating (Loss) / Profit
Finance Cost
Loss before Tax
Loss after Tax
Loss per share
March 31, 2015 March 31, 2014
277,962,314
(598,215,276)
(677,939,878)
(1,255,850,234)
(813,870,707)
(2.18)
The directors of Agritech Limited (Formerly Pak-American Fertilizers Limited), henceforth called the Company, along with the management team are pleased to present the Company's Un-Audited Financial Statements for the Quarter ended 31 March 2015.
These financial statements have been endorsed by the Chief Executive Officer and the one of the directors in accordance with the Code of Corporate Governance, having been recommended for approval by the Audit Committee of the Board and approved by the Board of Directors for presentation.
Business Review
Principal Activities
The main business of the Company is the manufacturing and marketing of fertilizers. The Company owns and operates the country's newest and most efficient urea manufacturing plant at Mianwali as well as a facility for the manufacture of SSP (Single Super Phosphate) at Haripur Hazara, which is the single largest SSP manufacturing plant in the country.
Having achieved the Company's strategic goal to become a diversified fertilizer manufacturer producing both nitrogenous and phosphatic fertilizers, the Company's products are sold under one of the most celebrated and trusted brand name "Tara" in the fertilizer market.
Quarterly Financial Results of Agritech Limited
171,047,248
(604,268,869)
(610,449,567)
(1,188,718,917)
(782,691,472)
(2.09)
The Company faced extended winter load shedding as per the previous years, due to severe natural gas crisis in Pakistan. The Plant remained closed from September 17, 2014 till March 29, 2015. However, Urea Production started in first week of April 2015. SSP sales were low due to 1st quarter demand for the phosphate is historically low due to off season. However, plant continued to operate at full capacity.
Capital Restructuring
The gas curtailment in the last 3 years has been the only cause of its debt servicing delays and because of this the mark up accumulated has created an increased debt burden. Whereas operating cash flows are healthy if gas remains available, a capital restructuring has been planned with the cooperation of lenders to enable Company to devise a capital structure, which will be sustainable for both Company and lenders, given the likely gas availability to the plant as allocated by the Government of Pakistan
Future Outlook
Consistent supply of natural gas continues to be the biggest challenge for the fertilizer industry in the near future amid the current gas shortage and pressure on Government of Pakistan from competing industries. Government is committed to increase domestic fertilizer production to save on Foreign Exchange and the cost of subsidizing imported Urea. Consequently, it is expected that gas availability is likely to improve particularly during summer months as witnessed during 2015.
4
Directors' Review
Agritech Limited
LahoreDate : 30 April 2015 Chief Executive Officer
On behalf of the Board
In the longer run, natural gas supply from the northern network is likely to increase over the next few years. This can benefit the company by virtue of its plant location in improvement of gas supply. Over the next few years, phosphate business development remains a key strategic thrust for the company to become the major SSP supplier in Pakistan.
Acknowledgement
The Board takes this opportunity to thank the company's valued customers and the financial institutions whose faith and support over the years has cultivate a mutually beneficial relationship, playing a key role in the growth of the businesses.
The Board also wishes to place on record its appreciation for the employees of the Company. All this has been possible with their hard work and commitment.
5Interim Financial Report
As at 31 March 2015
Condensed Interim Balance Sheet (Un-audited)
Note
EQUITY AND LIABILITIES
Share capital and reserves
Issued, subscribed and paid up capital
Reserves
Accumulated profit
Surplus on revaluation of fixed assets
Non-current liabilities
Redeemable capital - Secured 6
Long term finances - Secured 7
Long term payables - Unsecured
Staff retirement benefits
Deferred taxation - net
Current liabilities
Current maturity of non-current liabilities
Short term borrowings -secured
Trade and other payables
Interest/mark-up accrued on borrowings
Preference dividend payable
Contingencies and commitments 8
Lahore
ASSETS
Non-current assets
Property, plant and equipment 9
Intangible asset
Long term advances
Long term deposits -unsecured, considered good
Current assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Advances, deposits, prepayments and other receivables
Current taxation
Cash and bank balances
The annexed notes 1 to 16 form an integral part of this condensed interim consolidated financial information.
31 March 31 December
2015 2014
Un-Audited Audited
Rupees Rupees
5,517,642,690
5,517,642,690
9,000,000
9,000,000
(4,893,691,258) (4,504,448,372)
632,951,432 1,022,194,318
8,452,926,888 8,889,592,164
7,417,610,720 7,974,045,542
3,256,392,366 3,669,640,929
31,135,199 31,135,199
16,544,395 15,169,860
3,503,376,316 3,911,114,234
14,225,058,996 15,601,105,764
8,627,824,014 7,652,195,166
3,693,640,866 3,677,177,328
3,118,647,953 3,129,544,453
9,719,174,782 9,170,644,512
547,233,008 504,016,311
25,706,520,623 24,133,577,770
49,017,457,939 49,646,470,016
42,677,975,539 42,967,113,632
2,583,764,782 2,586,425,782
22,014,323 19,917,797
53,785,109 44,971,249
45,337,539,753 45,618,428,460
2,135,141,434 2,068,630,517
369,930,427 348,727,103
3,032,035 19,858,904
918,050,892 985,225,926
188,917,608 176,844,685
64,845,790 428,754,421
3,679,918,186 4,028,041,556
49,017,457,939 49,646,470,016
6 Agritech Limited
Condensed Interim Profit and Loss Account (Un-audited)For the quarter ended 31 March 2015
Sales - net
Cost of sales
Gross loss
Selling and distribution expenses
Administrative and general expenses
Operating loss
Finance cost
Net other income
Loss before taxation
Taxation
loss after taxation
Earning / (loss) per share basic and diluted
The annexed notes 1 to 16 form an integral part of this condensed interim consolidated financial information.
March 31, 2015 March 31, 2014
Un-Audited Un-Audited
Rupees Rupees
171,047,248
277,962,314
(586,771,475)
(661,719,870)
(415,724,227)
(383,757,556)
(22,424,183)
(23,353,447)
(166,120,459)
(191,104,274)
(604,268,869)
(598,215,277)
(610,449,567)
(677,939,878)
25,999,519
20,304,921
(1,188,718,917) (1,255,850,234)
406,027,445 441,979,527
(782,691,472) (813,870,707)
(2.09) (2.18)
Period ended
Lahore
7Interim Financial Report
Condensed Interim Statement of Comprehensive Income (Un-audited)For the quarter ended 31 March 2015
March 31, 2015 March 31, 2014
Un-audited Un-audited
Rupees Rupees
(782,691,472) (813,870,707)
(782,691,472) (813,870,707)
Period ended
loss after taxation
Total comprehensive income (loss) for the period
The annexed notes 1 to 16 form an integral part of this condensed interim consolidated financial information.
Lahore
8 Agritech Limited
For the quarter ended 31 March 2015
Condensed Interim Cash flow Statement (Un-audited)
(Un-audited) (Un-audited)
March March
2015 2014
Note Rupees Rupees
Cash flows from operating activities
Cash generated from operations 11 (308,097,709)
(240,446,820)
Finance cost paid (53,267,297)
(3,633,747)
Interest income received 4,172,228
-
Taxation paid (13,705,065)
(31,080,229)
Staff retirement benefits paid 199,337
-
Net cash (used in)/generated from operating activities (370,698,506)
(275,160,796)
Cash flows from investing activities
Capital expenditure including purchase of property, plant & equipmentt 3,349,760 (89,408,906)
Long Term advances (2,096,526) 322,599
Long term deposits (8,813,860)
95,000
Proceeds from disposal of property, plant & equipment 593,500
-
Net cash used in investing activities (6,967,126)
(88,991,307)
Cash flows from financing activities
Repayment of liabilities against assets subject to finance lease (2,706,537)
-Net increase in short term borrowings (6,234,844)
(15,625,584)
Net cash used in financing activities (8,941,381)
(15,625,584)
Net increase/(decrease) in cash and cash equivalents (386,607,013)
(379,777,687)
Cash and cash equivalents at the beginning of period (2,199,737,107)
(744,751,939)
Cash and cash equivalents at the end of period 13 (2,586,344,120)
(1,124,529,626)
The annexed notes 1 to 16 form an integral part of this condensed interim consolidated financial information.
Lahore
9Interim Financial ReportC
onde
nsed
Inte
rim
Sta
tem
ent
of C
hang
es in
Equ
ity
(Un-
audi
ted)
For
the
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Tot
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Ru
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Ru
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3,92
4,30
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0
1,59
3,34
2,69
0
9,00
0,00
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5,42
2,14
6,11
7
(813
,870
,707
)(8
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21,0
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9721
,060
,197
(43,
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693)
(43,
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,693
)
3,92
4,30
0,00
0
1,59
3,34
2,69
0
9,00
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23,7
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4,58
6,11
8,91
4
3,92
4,30
0,00
0
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3,34
2,69
0
9,00
0,00
0(4
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,448
,372
)1,
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318
(782
,691
,472
)(7
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436,
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278
436,
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278
(43,
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(43,
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3,92
4,30
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690
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,691
,258
)63
2,95
1,43
2
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net
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Pre
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The
ann
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nanc
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info
rmat
ion.
Lah
ore
10 Agritech Limited
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
1 Status and nature of business
Agritech Limited ("the Company") was incorporated in Pakistan on 15 December 1959 as an unlisted Public Limited Company under the Companies Act, 1913 (now the Companies Ordinance, 1984) and was a wholly owned subsidiary of National Fertilizer Corporation of Pakistan (Private) Limited ("NFC'), a Government owned Corporation, until 15 July 2006. Subsequently, 100% shares of the Company were acquired by Azgard Nine Limited ("ANL") as a part of privatization process of the Government of Pakistan as stipulated in the Share Purchase Agreement dated 15 July 2006. On 12 April 2010 the Company was listed on Karachi Stock Exchange ("KSE") vide KSE Notification No. KSE/N-1940. On 31 October 2012, ANL has sold its major shareholding in the Company to a consortium of banks and financial institutions. The registered office of the Company is situated at 2nd Floor Asia Center, 8 – Babar Block, Main Boulevard, New Garden Town, Lahore. The principal business of the Company is the production and sale of Urea and Granulated Single Super Phosphate ("GSSP") fertilizer. The Company has two production units with Unit I located at Iskanderabad, District Mianwali and Unit II at Hattar Road, Haripur.
2 Basis of preparation
2.1.1 Basis of accounting
This condensed interim financial information comprises the condensed interim balance sheet of Agritech Limited ("the Company"), as at 31 March 2015 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof.
2.1.2 This condensed interim financial information of the Company for the three months period ended 31 March 2015 has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
2.1.3 This condensed interim financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the twelve months financial statements as at and for the period ended 31 December 2014.
2.1.4 This condensed interim financial information is being submitted to the shareholders as required by Section 245 of the Companies Ordinance, 1984.
2.2 Financial liabilities and continuing operations
The Company continues to face operational issues due to gas load shedding in winter, which is extended now beyond winter months by Government of Pakistan. This gas is being diverted to the power sector in order to reduce electricity load shedding. This has perpetuated temporary liquidity issues resulting in over dues. Due to these factors, the Company has incurred a loss before tax of Rs. 782.69 M and reported negative cash flows of Rs. 308.09 million from operations during quarter ended 31 March 2015. As of that date, its current liabilities exceeded current assets by Rs. 22,026.60 million. Its accumulated loss stood at Rs. 4,893.69 million. These conditions cast significant doubt about the Company's ability to continue as a going concern. These financial statements are, however, being prepared on a going concern basis. The assumption that the Company would continue as a going concern is based on the fact that the Economic Coordination Committee (“ECC”) of the Cabinet in its meeting held on 18 December 2012 had approved a Dedicated Long Term Gas Supply Solution for Fertilizer Industry. By virtue of which a consortium of Four Fertilizer Manufacturers (“FFM”) including AGL, which are currently on SNGPL system has been allowed to purchase gas directly from alternate dedicated gas supply sources. All important pertinent contracts were signed with the gas producers and the Gas transporters. The execution of these contracts is currently being negotiated with the Government. With the commissioning of LNG terminal and successful import of LNG, by the Government of Pakistan, Gas availability in the country has improved. This is likely to improve gas supply to our Urea plant. As a consequence of additional gas supply from Northern network the gas supply for the company is likely to improve considerably for coming periods until the FFM arrangements commence.
Further, the Company has planned to convert its existing debt including mark-up into preference shares. The necessary steps for the said conversion have already been initiated by the Company. With the aforesaid conversion and other measures mentioned in the above paragraph, the management of the Company envisages that sufficient financial resources will be available for the continuing operations and it is expected to operate profitably
11Interim Financial Report
2.3 Financial liabilities
The Company could not make timely repayments of principal and interest / markup related to long term debts as referred to in note 14. Further, as at the reporting date, the Company could not comply with certain financial and other covenants imposed by the lenders. As per the agreed terms of long term debts the lenders have unconditional right to call the loans if timely repayments are not made or covenants are not complied with. International Accounting Standard on Presentation of financial statements (IAS - 1) requires that if an entity breaches a provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand, it should classify the liability as current.
However, the long term debts in the amount of Rs. 10,857.74 million as detailed below have continued to be classified as long term as per the repayment schedules in these financial statements. As mentioned in 2.2, NOCs for the conversion of debt in to the preference shares have been obtained from all the lenders and the matter is pending with SECP for approval. Conversion of the longterm debts into preference shares will address the subject:
Redeemable capital
Term Finance Certificates (TFCs) - ITerm Finance Certificates (TFCs) - IITerm Finance Certificates (TFCs) - IIIPrivately Placed Term Finance Certificates - VSukukTerm Finance Certificates (TFCs) - VI
Long term finances
Syndicate Term Finance - ISyndicate Term Finance - IIIKASB Bank Limited - Term FinanceNational Bank of Pakistan - Term FinanceDubai Islamic Bank Pakistan Limited - Term Finance
Principal net of
current maturity
Rupees
1,016,908,5004,235,061,891
320,319,850617,345,871982,734,286382,406,247
7,554,776,645
Principal net of
current maturity
Rupees
2,035,714,286832,257,128184,285,714132,083,735118,625,000
3,302,965,863
10,857,742,508
3 Estimates
The preparation of the condensed interim unconsolidated financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing the condensed interim unconsolidated financial information the significant judgments made by the management in applying accounting policies, key estimates and uncertainty includes:
- Residual value and useful life estimation of fixed assets
- Taxation
- Retirement and other benefits
- Provisions and contingencies
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
12 Agritech Limited
31 March 31 December
2015 2014Note
Un-audited Audited
Rupees Rupees
5 Issued, subscribed and paid up capital
5.1 3,834,300,000 3,834,300,000
90,000,000 90,000,000
5.2 1,593,342,690 1,593,342,690
5,517,642,690 5,517,642,690
Preference shares of Rs. 10 each159,334,269 (December 2014: 159,334,269)Shares issued fully paid in cash
Class A ordinary shares of Rs. 10 each383,430,000 (December 2014: 383,430,000)Shares issued fully paid in cash
9,000,000 (December 2014: 9,000,000)Shares issued for consideration other than cash
4 Statement of consistency in accounting policies
4.1 Except as describe below, the accounting policies and the methods of computation adopted in the preparation of this condense interim financial information are the same as those applied in the preparation of the twelve months financial statements for the period ended 31 December 2014.
4.2 Change in accounting policy
"During the current period, the Company has adopted the amended version of IAS 19 Employee Benefits (amended 2011) and changed its basis for determining the income or expense related to defined benefits plans.”
Under IAS 19, the Company determines the net interest expense (income) for the period on the net defined benefit liability (asset) by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability (asset) at the beginning of the annual period, taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. All the changes in the present value of defined benefit obligation are now recognized in statement of comprehensive income and the past service costs are recognized in profit and loss account, immediately in the period they occur. The change in accounting policy has been applied prospectively, being considered immaterial. IAS 1 (amendment) - Presentation of Financial Statements.
4.3 There were certain other new standards and amendments to the approved accounting standards which became effective during the period but are considered not to be relevant or have any significant effect on the Company's operations and are, therefore, not disclosed.
In addition to the above, following standards, amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 July 2014:
Standard or interpretation Effective date (accounting periods beginning on or after)
IAS 19 - Employee Benefits 01 July 2014
IAS 38 - Intangible Assets 01 January 2016
IAS 16 - Property, Plant and Equipment 01 January 2016
IAS 41 - Agriculture 01 January 2016
Annual Improvements to IFRSs 2010-2012 and 2011-2013 Cycles 01 July 2014
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
13Interim Financial Report
5.1 "As at 31 March 2015, National Bank of Pakistan, an associated undertaking holds 130,715,224 (December 2014:130,715,224) ordinary shares of the Company.”
5.2 The preference shares (the shares) have been treated as part of equity on the following basis:
- The shares were issued under the provisions of section 86 of the Companies Ordinance, 1984 (the Ordinance) read with section 90 of the Ordinance and the Companies Share Capital (Variation in Rights and Privileges) Rules, 2000.
- The financial capital of the Company and the issue of the shares were duly approved by the shareholders of the Company at the Extraordinary General Meeting held on 29 August 2011.
- Return of allotment of shares was filed under section 73(1) of the Ordinance.
- The Company is required to set-up a reserve for the redemption of Preference shares, under section 85 of the Ordinance, in respect of the shares redeemed which effectively makes Redeemable Preference shares a part of equity.
- The requirements of the Ordinance takes precedence over the requirements of International Accounting Standards.
- The preference shareholders have the right to convert these shares into Ordinary shares.
Further, the matter regarding the classification of Redeemable Preference share capital as either debt or equity instrument has been examined by the Institute of Chartered Accountants of Pakistan (ICAP) as a result of which the ICAP has advised the Securities and Exchange Commission of Pakistan (SECP) to make necessary amendments in the Companies Ordinance, 1984, and / or to issue a clarification in order to remove the inconsistency between the Companies Ordinance, 1984 and the International Accounting Standards. Pending the decision of the SECP in this matter, the Preference share capital has been classified as equity in these financial statements.
6 Redeemable Capital - Secured
Term Finance Certificates - I
Term Finance Certificates - II
Term Finance Certificates - III
Privately Placed Term Finance Certificates - IV
Privately Placed Term Finance Certificates - V
Privately Placed Term Finance Certificates - VI
Sukkuks
Transaction costs
Current maturity presented under current liabilities
1,498,602,000
6,894,286,800
495,460,750
548,825,000
618,685,000
509,874,996
1,599,800,000
12,165,534,546
(137,165,925)
12,028,368,621
(4,610,757,901)
7,417,610,720
1,498,602,000
6,894,286,800
495,460,750
548,825,000
618,685,000
509,874,996
1,599,800,000
12,165,534,546
(142,937,925)
12,022,596,621
(4,048,551,078)
7,974,045,543
31 March 31 December
2015 2014
Un-audited Audited
Rupees Rupees
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
14 Agritech Limited
33,789,240
68,012,925
101,802,165
20,151,372
20,151,372
8.2.2
32,066,112
63,327,681
95,393,793
20,151,372
20,151,372
Not Later than one year
Later than one year but not later than five years
Commitments under irrevocable letters of credit
for:
Commitments under irrevocable letters of
credit for:- purchase of stores, spares and loose tools
7 Long term finances
Syndicate Term Finance - I
Syndicate Term Finance - II
Syndicate Term Finance - III
KASB Bank Limited - Term Finance
National Bank of Pakistan - Term Finance
Dubai Islamic Bank Pakistan Limited - Term Finance
Transaction Cost
Current maturity presented under current liabilities
3,000,000,000
475,000,000
3,009,833,663
300,000,000
132,083,735
365,000,000
7,281,917,398
(46,573,497)
7,235,343,901
(3,978,951,535)
3,256,392,366
3,000,000,000
475,000,000
3,009,833,663
300,000,000
132,083,735
365,000,000
7,281,917,398
(49,453,497)
7,232,463,901
(3,562,822,972)
3,669,640,929
31 March 31 December
2015 2014
Un-audited Audited
Rupees Rupees
8 Contingencies and commitments
8.1 Contingencies
There is no material change in contingencies from the preceding annual publish financial statements of the company for the period ended 31 December 2014.
8.2 Commitments
8.2.1 The amount of future ijarah rentals and the period in which these payments will become due are as follow:
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
15Interim Financial Report
9 Property, plant and equipment
Operating fixed assets 9.1
Capital work in progress
9.1 Operating fixed assets
Net book value at end of the period
Add: Additions during the period 9.1.1
Less: Disposals during the period / year - net book value
Depreciation for the period
Net book value at end of the period
9.1.1 Additions - cost
Owned assets
Freehold land
Buildings on freehold land
Plant and machinery
Furniture, fixtures and office equipment
Vehicles and rail transport
Tools and other equipment
Electrical and other installations
Catalyst
42,610,182,746
67,792,793
42,677,975,539
42,895,817,533
2,623,720
2,623,720
2,969,691
285,288,816
288,258,507
42,610,182,746
-
2,623,720
-
-
-
-
-
2,623,720
31 March 31 December
2015 2014
Un-audited Audited
Rupees Rupees
291,005,950
395,514,838
9,352,867,755
9,146,326
2,506,335
70,313,252
10,121,425,900
42,895,817,533
71,296,099
42,967,113,632
35,890,049,631
10,121,425,900
10,121,425,900
112,293,545
3,003,364,453
3,115,657,998
42,895,817,533
6,444
65,000
Note
10 Transactions and balances with related parties
Related parties from the Company's perspective comprise associated undertakings, key management personnel (comprising the chief executive and directors), post employment benefit plans and other related parties. The Company in the normal course of business carries out transactions with various related parties and continues to have a policy whereby all such transactions are carried out at arm's length with the expectations as approved by the Board of Directors.
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
16 Agritech Limited
10.1
10.1.1
National Bank of Pakistan
Markup expense
Preference dividend
Advisory Fee
Bank Balances - net
10.1.2
Mark up Expense
Preference dividend
Bank Balances - net
Standard Chartered Bank (Pakistan) Limited
Mark-up expense
Mark-up expense
Markup paid
Short term borrowings - net
Summit Bank Limited
Mark-up expense
Markup paid
Short term borrowings - net
10.1.3
10.1.4
Detail of transactions and balances with related parties are as follows:
Transactions with related parties
Faysal Bank Limited
Other related parties
Associate
Contribution to employees provident fund
Contribution to employees gratuity fund
Post employment benefits
Post employment benefit plans
Short term employee benefits
Key management personnel
Silk Bank limited
85,027,604
17,686,421
90,000,000
(4,218,092)
50,548,784
8,417,873
1,437
44,466,542
17,384,518
8,770,633
(5,271,961)
31,797,858
28,453,992
(72,123,740)
5,460,696
1,472,289
6,146,834
184,497
(Un-audited)
January to
March
2015
Rupees
(Un-audited)
January to
March
2014
Rupees
84,304,714
16,748,293
90,000,000
(61,752,914)
56,310,209
8,417,873
(140,051,501)
45,712,437
18,341,323
-
5,497,615
32,524,894
-
(53,000,000)
4,812,137
2,301,480
6,238,800
355,857
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
17Interim Financial Report
10.2
10.2.1
National Bank of Pakistan
Long term loans
Redeemable capital
Bills payable
Preference shares
Mark-up payable
Preference dividend payable
Bank accounts
Advisory and other fee
Advance for transaction Cost
10.2.2
Faysal Bank
Redeemable capital
Long term loan
Preference shares
Mark up payable
Preference dividend payable
Bank accounts
Standard Chartered Bank (Pakistan) Limited
Redeemable capital
Long term finances
Mark-up payable
Silk Bank Limited
Long term loans
Short term borrowings
Bills payable
Mark up payable
Summit Bank Limited
Redeemable capital
Short term borrowings
Bills payable
Mark up payable
Associate
Other related parties
Balances with related parties
2,467,083,735
462,057,100
187,030,000
34,587,560
1,568,118,208
163,348,552
205,274,372
359,600,000
23,200,000
1,499,109,500
350,000,000
310,355,940
829,214,534
98,208,523
1,332,851
146,995,500
1,499,904,160
699,136,953
130,607,546
501,103,546
24,796,733
163,972,159
603,406,000
670,863,965
-
250,677,062
2,467,083,735
462,057,100
187,030,000
34,587,560
1,653,145,812
181,034,973
920,293
464,200,000
23,200,000
1,499,109,500
350,000,000
310,355,940
879,763,318
106,626,397
1,337,829
146,995,500
1,499,904,160
743,603,495
130,607,546
478,998,448
42,207,529
172,586,044
603,406,000
673,610,281
14,888,617
254,020,928
(Un-audited) (Audited)
31 March 31 December
2015 2014
Rupees Rupees
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
11 Cash flow from operating activities
Profit & (Loss) before tax (1,188,718,917)
Adjustment for non-cash and other items:
Interest / markup expense 601,797,567
Amortization of transaction costs 8,652,000
Depreciation 285,288,816
Amortization of computer software 2,661,000
Staff retirement benefit 1,175,198
Mark-up / Interest Income (4,172,228)
Gain on sale of property, plant and equipment (93,983)
Operating profit before changes in working capital (293,410,547)
Changes in working capital
(Increase) / decrease in current assets:
Increase in stores, spares and loose tools (66,510,917)
Decrease in stock in trade (21,203,325)
Decrease in trade receivables 16,826,868
Increase in advances, deposits, prepayments and other receivables 67,175,034
(3,712,340)
Increase / (decrease) in current liabilities
Trade and other payables (10,974,822)
Cash generated from operations (308,097,709)
(1,255,850,234)
659,205,226
18,734,652
227,277,070
2,337,108
2,272,286
-
-
(346,023,892)
(13,248,097)
15,932,012
5,107,102
17,317,529
25,108,546
80,468,526
(240,446,820)
18 Agritech Limited
(Un-audited) (Audited)
31 March 31 December
2015 2014
Rupees Rupees
10.2.3
16,544,395 15,169,860
Post employment benefit plans
Payable to gratuity Trust
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
19Interim Financial Report
12
12.1
Rep
orta
ble
seg
men
ts
Th
e C
om
pany
's r
epor
tabl
e se
gmen
ts a
re a
s fo
llow
s:
-U
rea
fert
iliz
er s
egm
ent
- pr
oduc
tion
of
Ure
a fe
rtil
izer
and
am
mon
ia f
rom
nat
ural
gas
and
-P
hosp
hate
fer
tili
zer
segm
ent
- pr
oduc
tion
of
Pho
spha
te f
erti
lize
r fr
om r
ock
Pho
spha
te
Info
rmat
ion
reg
ardi
ng t
he C
ompa
ny’s
rep
orta
ble
segm
ents
is
pres
ente
d be
low
:
12.2
Seg
men
t re
ven
ue
an
d r
esu
lts
Fo
llow
ing
is
the
info
rmat
ion
abou
t re
port
able
seg
men
ts o
f th
e C
ompa
ny:
Fo
r th
e th
ree
mon
ths
peri
od e
nded
31
Mar
ch 2
015
repo
rtab
le s
egm
ent
(Los
s)/
Pro
fit
befo
re t
ax
As
at
Rep
orta
ble
segm
ent
asse
ts
Rep
orta
ble
segm
ent
liab
ilit
ies
12.3
Rec
onci
lia
tion
of
rep
orta
ble
seg
men
t p
rofi
tab
le s
egm
ent
pro
fit
and
los
s
For
the
thr
ee m
onth
s en
ded
Tot
al l
oss
for
repo
rtab
le s
egm
ents
bef
ore
tax
Una
lloc
ated
cor
pora
te e
xpen
ses
Los
s af
ter
tax
Seg
men
t re
po
rtin
g
31 M
arch
31
Mar
ch
2015
2014
Un
-au
dit
edU
n-au
dite
d
Ru
pee
sR
upee
s
87,6
93,4
83
160,
239,
460
83,3
53,7
65
117,
722,
854
171,
047,
248
277,
962,
314
(1,1
87,0
74,7
10)
(1,2
61,6
65,5
42)
(1,6
44,2
05)
5,81
5,30
7(1
,188
,718
,915
)(1
,255
,850
,235
)
31 M
arch
31
Dec
embe
r
2015
2014
Un
-au
dit
edA
udit
ed
Ru
pee
sR
upee
s
44,9
46,6
74,4
7645
,557
,707
,568
4,70
4,54
0,31
44,
797,
631,
960
49,6
51,2
14,7
9050
,355
,339
,528
39,4
76,8
41,3
8939
,264
,444
,064
1,08
8,49
5,08
11,
179,
108,
989
40,5
65,3
36,4
7040
,443
,553
,053
(Un
-au
dit
ed)
(Un-
audi
ted)
31 M
arch
31
Mar
ch
2015
2014
Ru
pee
sR
upee
s
(1,1
88,7
18,9
17)
(1,2
55,8
50,2
34)
406,
027,
445
441,
979,
527
(782
,691
,472
)(8
13,8
70,7
07)
Tot
al
Ph
osp
hat
e fe
rtil
izer
s se
gmen
tT
otal
Ure
a fe
rtil
izer
s se
gmen
tP
hos
ph
ate
fert
iliz
ers
segm
ent
Ure
a fe
rtil
izer
s se
gmen
t
31 M
arch
31
Mar
ch
2015
2014
Un
-au
dit
edU
n-au
dite
d
Ru
pee
sR
upee
s
31 M
arch
31
Dec
embe
r
2015
2014
Un
-au
dit
edA
udit
ed
Ru
pee
sR
upee
s
31 M
arch
31
Mar
ch
2015
2014
Un
-au
dit
edU
n-au
dite
d
Ru
pee
sR
upee
s
31 M
arch
31
Dec
embe
r
2015
2014
Un
-au
dit
edA
udit
ed
Ru
pee
sR
upee
s
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
Nature of Liability
Redeemable capital
Long term finances
Short term borrowings
Bills payable
Liabilities against assets subject to finance lease - Secured
20 Agritech Limited
13 Cash and cash equivalents
Short term borrowings - secured (2,651,189,910)
Cash and bank balances 64,845,790
(2,586,344,120)
(Un-audited) (Audited)
31 March 31 December
2015 2014
Rupees Rupees
(2,078,295,046)
953,765,420
(1,124,529,626)
14 Overdue financial liabilities
The Company in previous year as well as in current period faced operational issues and extended gas load shedding from SNGPL. As a result, the Company is facing liquidity shortfall due to which it was unable to meet its obligations in respect of various debt finances. The details are as follows:
Principal
3,176,959,541
2,571,846,197
453,429,532
187,031,000
38,114,578
6,427,380,848
Rupees
Interest / mark up
5,004,308,162
3,483,917,019
246,900,758
67,257,935
-
8,802,383,874
Rupees
Total
8,181,267,703
6,055,763,216
700,330,290
254,288,935
38,114,578
15,229,764,722
Rupees
15 Date of authorization
This interim financial information was authorized for issue by the Board of Directors of the Company on April 30, 2015
16 General
16.1 Figures have been rounded off to the nearest thousand of Rupees.
Lahore
Condensed Interim Notes to the Financial Information (Un-audited)For the quarter ended 31 March 2015
AGRITECH LIMITED
2nd Floor, Asia Centre, 8-Babar Block, New Garden Town, Lahore.
Ph : 042 - 35860341-44, Fax : 042 - 35860339-40
info
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